Conference Call Q3 2006 Revenue October 19, 2006
2 September YTD 2006 Revenue: 5,641M Solid YTD growth: +7.0% reported, +6.3% like-for-like Hotels: +5.7% reported, +5.8% like-for-like Services: +22.7% reported, +15.9% like-for-like Like-for-like growth +6.0% +6.8% +6.3% Growth acceleration in Q3 +6.8% like-for-like in Q3 vs. +6.0% in H1 H1 2006 Q3 2006 YTD 2006
Q3 2006 Revenue: 1,951M Highlights +6.8% Like-for-like L/L growth acceleration in Q3: +6.8% vs. +6.0% in H1 +2.9% -4.4% -0.8% Expansion Disposals Currency impact Hotels: +6.3% like-for-like Northern Europe: strong performance confirmed Southern Europe(*): recovery on track Services: +15.1% like-for-like Perimeter and currency impact: -2.3% in Q3 vs. +2.4% in H1 +4.5% Total reported Negative currency impact in Q3: -0.8% vs. +2.2% in H1 More disposals in Q3: impact -4.4% vs. -3.4% in H1 (*) Including France 3
Group Revenue: Contribution from expansion +2.9% Hotels: +3.4% Opening of 15,538 rooms over the first 9 months out of which 66% under franchise and management Services: +3.1% Growth essentially due to 3 acquisitions: Stimula (France) gift vouchers, Q4 2005 Commuter check (USA) transportation vouchers, Q1 2006 Serial (Italy) meal voucher, Q3 2006 4
Group Revenue: Impact from disposals -4.4% 5 In accordance with the Asset Management Strategy, hotel disposals in Q3 has a negative impact on revenue of 5.2% vs. 4.0% in H1 Impact from disposals H1 Q3 Upscale & Midscale -6.5% -8.7% Economy -0.3% -1.3% Economy US -1.5% -1.3% TOTAL -4.0% -5.2%
Group Revenue: Currency Impact -0.8% 6 H1 Q3 Currency impact on total Group revenue +2.2% -0.8% Currency impact on revenue in USD +4.6% -3.4% Currency impact on revenue in Brazilian Real +23.8% +5.8%
7 Upscale / Midscale Hotels Q3 Revenue
Upscale and Midscale hotels Q3 Highlights 8 Overall growth acceleration +7.6% L/L in Q3 vs. +5.7% in H1 Northern Europe: favorable trend confirmed Germany: +14.0% L/L in Q3 vs. +10.4% in H1 Excluding Football World Cup: +11.4% L/L in Q3 vs. +7.3% in H1 UK: +12.3% L/L in Q3 vs. +7.5% in H1 Benelux: +6.1% L/L in Q3 vs. +6.0% in H1
Upscale and Midscale hotels Q3 Highlights Southern Europe: recovery on track Spain: +14.0% L/L in Q3 vs. +9.9% in H1 Italy: +11.4% L/L in Q3 vs. +8.0% in H1 France: +4.5% L/L in Q3 vs. +2.1% in H1 France excl. Foncière des Murs renovations: +5.8%L/L in Q3 vs. +3.9% in H1 Sofitel: strong Revpar improvement in Q3 +10.5% L/L vs. +7.9% in H1 9
10 Economy hotels Q3 Revenue
Economy hotels Q3 Highlights 11 Overall growth acceleration +5.8% L/L in Q3 vs. +4.7% in H1 Northern Europe: favorable trend confirmed Germany: +4.6% L/L in Q3 vs. +7.7% in H1 Excluding Football World Cup: +3.2% L/L in Q3 vs. +4.3% in H1 UK: +12.9% L/L in Q3 vs. +0.7% in H1 Southern Europe: recovery on track France: +3.6% L/L in Q3 vs. +3.1% in H1 Spain: +13.3% L/L in Q3 vs. +8.9% in H1 Italy: +4.6% L/L in Q3 vs. +4.1% in H1
12 Economy US Hotels Q3 Revenue
Economy U.S. hotels Q3 Highlights 13 Deceleration in Q3: +3.7% like-for-like vs. +6.0% in H1 Rising oil prices in July and August Negative comparison base due to impact of hurricanes in September 2005. Revpar H1 Q3 Motel 6 +6.7% +4.1% Red Roof Inn +5.3% +3.5%
14 SERVICES Human Resources Marketing Services Expense Management
Services Q3 Highlights Outstanding growth: +15.1% like-for-like Latin America: +19.2% L/L Europe: +12.3% L/L Organic growth driven by: Extension of product range Belgium: +20.1% L/L (Ticket Emploi Service) UK: +11.4% L/L (Childcare Voucher) Mexico: +31.4% L/L (Ticket car) Increase of penetration rate Argentina: +38.8% L/L 15
OTHER BUSINESSES 16
Other businesses Q3 2006 Revenue 17 H1 2006 Q3 2006 variation L/L variation L/L Casinos +3.7% +2.5% Restaurants +2.7% +8.6% Onboard Train Services -2.5% +0.2% Holding & Other +11.9% +6.9% TOTAL +3.2% +4.9%
18 Conclusion L/L revenue growth acceleration in Q3 Strong overall performance Hotels Northern Europe: Strong growth confirmed in Germany, UK, Benelux Southern Europe: Recovery on track in France Strong growth in Spain and Italy Economy US: Deceleration due to oil price surge and hurricanes comparison effect Services Outstanding performance across all regions 2006 Profit Before Tax objective maintained 680m // 700m
Questions and Answers October 19, 2006 Conference Call Q3 2006 Revenue
Upscale and Midscale hotels Q3 2006 Revenue 20 Q3 06 Change In million Reported Like-for-like Total Worldwide 746.7 +2.6% +7.6% Of which: France 277.5 +4.1% +4.5% Europe (excl. France) 304.4 +9.0% +10.9% North America 34.3-33.8% +6.9% Emerging countries 120.2 +0.4% +6.7%
Economy hotels Q3 2006 Revenue Q3 06 Change In million Reported Like-for-like France 173.4 +3.0% +3.6% Europe (excl. France) 191.5 +11.2% +7.5% Other 34.7 +13.6% +7.8% Total Economy Worldwide (excl. U.S.) 399.6 +7.7% +5.8% 21
Economy U.S. hotels Q3 2006 Revenue 22 Q3 06 Change In million Reported Like-for-like Motel 6 195.2-0.1% +3.8% Red Roof Inn 78.1-2.4% +3.1% Other 4.8 +2.0% +5.6% Total Revenue 278.1-0.7% +3.7%
Services Q3 2006 Revenue Q3 2006 Change In million Reported Like-for-like Total Services 178.5 +17.1% +15.1% Of which: Europe 93.1 +15.8% +12.3% Latin America 75.3 +18.9% +19.2% 23
Reconciliation like-for-like RevPAR / Revenue as of September YTD 24 RevPAR Sub. and Managed Reported RevPAR Sub. Only Like-for-like Like-for-like room revenues Total Like-for-like revenues Upscale and Midscale Europe +8.4% +7.5% +6.9% +5.9% Economy Europe +5.7% +5.3% +5.3% +4.9% Economy U.S ($) +5.4% +5.1% +5.0% +5.1%
Hotels: RevPAR by segment as of September 2006 (YTD) 25 Occupancy Rate Average room Rate RevPAR Upscale and Midscale Europe (Reported) (Reported) In % In pts In In % Sub. Reported Sub. Reported Sub. L/L(1) Sub.+Mgt Reported 65.4% +2.0 98 +4.8% 64 +8.2% +7.5% +8.4% Economy Europe 73.5% -0.2 52 +6.2% 38 +6.0% +5.3% +5.7% Economy U.S ($) 66.4% -0.6 47 +6.4% 31 +5.4% +5.1% +5.4% (1) At comparable scope of currency and perimeter
Hotels: RevPAR by country as of September 2006 (YTD) 26 UPSCALE -MIDSCALE In local currency Number of rooms Occupancy Rate Average room Rate RevPAR (Reported) (Reported) In % In pts In In % Sub. Reported Sub. Reported Sub. L/L(1) Sub.+Mgt Reported France 30,418 63.2% +1.2 104 +2.5% 66 +4.5% +4.0% +4.8% Germany 13,619 65.7% +5.1 78 +8.7% 51 +17.9% 16.3% +15.3% Netherlands 3,696 67.0% +0.5 110 +10.0% 74 +10.9% +10.9% +10.8% Belgium 2,230 68.4% +1.6 97 +1.6% 67 +4.0% +4.0% +7.4% Spain 2,253 62.0% -0.9 96 +1.0% 59-0.3% +13.3% -1.2% Italy 3,086 64.8% +4.0 115 +1.7% 75 +8.4% +8.4% +8.4% UK (in ) 5,163 76.8% +3.8 79 +4.0% 60 +9.5% +9.6% +9.6% USA (in $) 2,352 71.4% -3.1 203 +18.8% 145 +13.9% +10.7% +12.0% (1) At comparable scope of currency and perimeter
Hotels: RevPAR by country as of September 2006 (YTD) 27 ECONOMY HOTELS Occupancy Rate Average room Rate RevPAR Number of rooms (Reported) (Reported) In local currency France 44,295 In % In pts In In % Sub. Reported Sub. Reported Sub. L/L(1) Sub.+Mgt Reported 73.9% -1.2 45 +5.3% 33 +3.6% +3.5% +3.6% Germany 15,324 71.8% +0.3 54 +7.0% 39 +7.4% +7.4% +7.9% Netherlands 2,215 81.0% +6.6 74 +6.0% 60 +15.4% +15.4% +15.4% Belgium 2,477 75.7% +0.3 62 +3.9% 47 +4.3% +4.3% +4.3% Spain 3,623 77.7% +3.6 52 +6.1% 40 +11.3% +10.7% +11.3% Italy 1,340 59.5% +0.7 73 +1.2% 43 +2.4% +5.3% +2.4% UK (in ) 6,740 74.0% -1.0 50 +5.2% 37 +3.8% +4.9% +4.3% USA (in $) 107,870 66.4% -0.6 47 +6.4% 31 +5.4% +5.1% +5.4% (1) At comparable scope of currency and perimeter